The UK’s Energy Price Cap
For Tenants, Homeowners, and Landlords in the United Kingdom

This page provides official guidance on the Energy Price Cap, a regulatory mechanism designed to limit the maximum price energy suppliers can charge domestic customers on standard and default tariffs. The information applies to tenants, homeowners, and landlords across Great Britain, particularly those who do not have a fixed-rate energy contract.

The Energy Price Cap is set by Ofgem, the independent energy regulator for Great Britain. It is updated four times a year and applies to both electricity and gas.

Purpose of the Energy Price Cap

The Energy Price Cap was introduced in January 2019 under the Domestic Gas and Electricity (Tariff Cap) Act 2018. Its primary purposes are to:

  • Protect consumers from unfair or excessive energy charges
  • Ensure energy prices reflect the actual cost of supply
  • Provide stability in a volatile energy market
  • Encourage competition while safeguarding passive or disengaged consumers

The cap is intended as a safety net, not a maximum bill. Your actual bill depends on how much energy you use.

Who the Price Cap Applies To

The Energy Price Cap applies to households on the following types of tariffs:

  • Standard variable tariffs (SVTs)
  • Default tariffs (applied after a fixed deal ends if no new deal is chosen)
  • Deemed tariffs (inherited when moving into a new home without setting up a contract)
  • Prepayment meter tariffs (covered under a separate Prepayment Meter Cap)

It does not apply to fixed-term deals, green tariffs exempted by Ofgem, or business energy contracts.

What the Price Cap Covers

The cap limits:

  • Unit rates (cost per kilowatt-hour, or kWh, for gas and electricity)
  • Standing charges (daily fixed fees for maintaining your energy supply)

It does not cap your total bill. The more energy you use, the more you pay.

Example (illustrative only):
If the cap sets a unit rate at 27p/kWh for electricity and you use 1,000 kWh, your cost for that usage will be £270.

Cap Review Schedule

Ofgem reviews and sets the price cap every three months—in:

  • January
  • April
  • July
  • October

Each update reflects changes in:

  • Wholesale energy costs
  • Network and operating charges
  • Supplier profits and policy costs
  • Market volatility and seasonal factors

The cap level is published at least six weeks before taking effect.

Prepayment Meter Cap

Customers on prepayment meters are protected by a separate cap known as the Prepayment Price Cap. This operates similarly to the main cap but includes additional cost considerations for metering infrastructure.

Ofgem ensures that prepayment customers are not disproportionately charged and receive equivalent protections to those on standard credit meters.

Impact on Household Bills

While the Energy Price Cap limits maximum rates, it does not guarantee lower bills. Your household’s total energy cost depends on:

  • How much energy you consume
  • Your property’s energy efficiency (EPC rating)
  • Heating type and appliance usage
  • Whether you’re on a fixed or variable tariff

The cap ensures that you are not overcharged if you remain on a default tariff, but switching or improving efficiency may yield further savings.

Your Rights and Protections

Under Ofgem rules, your supplier must:

  • Inform you in writing if you are on a capped tariff
  • Notify you of upcoming changes to the cap and how it affects your prices
  • Offer a range of tariffs and allow switching without penalty (if not in a fixed-term contract)
  • Ensure compliance with the cap, or face regulatory enforcement

You do not need to apply for the cap—it is applied automatically by your supplier.

How to Check If You Are Affected

To determine if the Energy Price Cap applies to your household:

  1. Review your latest bill or account information
  2. Look for “Standard Variable Tariff” or similar wording
  3. Contact your supplier and ask whether you are on a capped tariff
  4. Compare your rates with the current price cap published by Ofgem
  5. Use Ofgem-accredited comparison tools to see if a fixed deal offers better value

If you’re unsure, you can call Citizens Advice on 0808 223 1133 for guidance.

Recommended Action Steps

To ensure you are protected and potentially reduce energy costs:

  1. Check your current tariff to confirm whether it is subject to the price cap
  2. Compare alternative tariffs to assess potential savings from fixed-rate or time-of-use plans
  3. Monitor quarterly price cap updates via www.ofgem.gov.uk
  4. Contact your supplier if you suspect your rates exceed the current cap
  5. Seek independent advice from Citizens Advice or other consumer organisations if needed

The Energy Price Cap is designed to ensure fairness in a complex market. It offers essential protections, but proactive management of your energy account may still result in greater savings.